CMB’s new blockchain system has shown its high efficiency where the decentralized system decreases information transmission time from its usual 6 minutes to within seconds. It has also shown high security where it is difficult to mutate the information that is recorded on a closed private chain. High stability where a breakdown of any node will not affect the operation of the network, and high scalability where a new member can quickly integrate to the whole network, was also proven by the blockchain test.

China Merchants Bank is also working with foreign banks to create a universal standard for cross-border payments. If successful, it will enable China Merchants Bank to execute direct settlements between different banks, increasing the efficiency even further. China Merchants Bank is expected to expand the blockchain implementation to its other operational segments in the near future.

Last month, the People’s Bank of China completed a trial of a blockchain-based digital currency. The digital currency system was tested with several commercial banks, including the Industrial and Commercial Bank of China, Bank of China and the private WeBank.